Title: The role of management control systems in the performance of higher education through good university governance

Authors: Ali Muktiyanto; Ancella Anitawati Hermawan; Rini Dwiyani Hadiwidjaja

Addresses: Faculty of Economics, Accounting Department, Universitas Terbuka, Tangerang Selatan, 15418, Indonesia ' Faculty of Economics and Business, Universitas Indonesia, Depok, Indonesia ' Faculty of Economics, Accounting Department, Universitas Terbuka, Tangerang Selatan, 15418, Indonesia

Abstract: Management control systems (MCSs) encourage university management to focus on achieving the expected performance. Unfortunately research on MCS in the public sector, has been very limited especially in the universities. It has been argued that MCS affects the Performance of Higher Education albeit in a weak manner. However, there are certain other variables that influence the role of MCS on higher education performance. Good university governance (GUG) is one of them. Kim (2008) states that GUG factors determine the success of management, quality control and organisational performance. This study seeks to examine the role of GUG under the influence of MCS on Performance. A study of 70 undergraduate accounting study programs in Indonesia using structural equation model has shown that MCS does affect performance. The effect is more pronounced with GUG being a mediator between MCS and performance. This suggests that the role of GUG should be optimised to enhance the role of MCS.

Keywords: management control system; higher education; performance; GUG; good university governance.

DOI: 10.1504/IJTGM.2020.108777

International Journal of Trade and Global Markets, 2020 Vol.13 No.3, pp.288 - 310

Received: 09 Apr 2018
Accepted: 08 Apr 2019

Published online: 28 Jul 2020 *

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